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Daily Nation : February 23rd 2014
40 | Business INDUSTRY | Government cancelled 42 licences issued between January and May last year Mining laws scaring off investors R Foreign capitalists wary of regulations that require them to cede 35 pc of shares to local owners BY JAMES KARIUKI @kamaukariuki firstname.lastname@example.org ecent regulatory measures taken to streamline operations in the mining sector need balancing with the need to attract investors. A report by the Dubai-based Oxford Business Group, while welcoming the efforts to boost national income, states Kenya must tread carefully on the ‘income-issue’ to retain investors and also attract more players to this fledging industry. Geological studies, the report adds, should be conducted to get a clear picture of the country’s resources, and infrastructure upgraded as a matter of urgency to hasten the process of commercial exploitation of minerals. “Increasing the local share of mining revenue will help to diversify and expand the economy through job creation for the locals as evidenced in the rest of sub-Saharan Africa. Kenya has proven deposits of titanium, gold and coal and is estimated to hold significant amount of copper, niobium, manganese and rare earth minerals worth trillions of shillings. “Kenya has witnessed in- FILE | NATION Mining Secretary Najib Balala with Australia’s ambassador to Kenya Geoff Toot at a ceremony to launch the first consignment of titanium export to China early this month. creased investor interest as global demand for precious metals and minerals has risen in recent years,” states the report. But prospective zeal was abruptly halted when the government cancelled 42 licences citing integrity issues over the issuance between January and May last year, with an independent task force created to review the suspended licences. OBG says investors in the mining industry are wary of new government regulations that seek to boost local content and revenue capture via a law requiring foreign mining companies to cede a minimum 35 per cent stake to local owners. The mining industry has also been affected by other broader changes to the business environment, as well as royalties raised for a number of metals and minerals. But all seems to be well, with the first shipment of raw titanium valued at Sh350 million, exported last week. President Uhuru Kenyatta has also given assurances that Kenya will provide enabling environment for investors. SUNDAY NATION February 23, 2014 BRIEFLY KIAMBU Training to empower women to win tenders The Enablis Entrepreneurial Network East Africa has rolled out training on public procurement that targets women in different counties. The first training on Empowering Businesswomen to Win Government Tenders was held in Thika, Kiambu County. The programme is being implemented in collaboration with Aspen Network of Development Entrepreneurs and Investeq. Regional Director Fredrick Kariuki said the programme targets 300 women in Kiambu, Machakos, Nakuru, Kisumu and Nairobi. NAIROBI DP Ruto launches new CIC Insurance offices CIC Insurance Group has re- newed its customer focus by opening a multi-million ultra-modern office block to serve clients much more efficiently and contribute to the faster growth of the insurance industry. The IT-enabled building, which is the second phase of the Group’s investment in Nairobi’s Upper Hill area, was opened by Deputy President William Ruto. It comprises 12 floors, twin towers, and has been constructed over the last two years at a total cost of Ksh800 million.
February 22nd 2014
February 24th 2014